Licensed Producer

Definition - What does Licensed Producer mean?

In the medical marijuana industry, a licensed producer is an individual that possesses a state or municipal license to grow, harvest, dry, trim, cure, and package cannabis. The cannabis can then be sold to licensed wholesalers (facilities). A licensed producer can also sell live plants and seeds.

Cultivation of marijuana is legal in numerous states in the United States. However, such individuals most possess a state license. In some states, and in Canada, a licensed producer is not an individual but a business entity, such as a gardening nursery, that has been issued a state license and permit to cultivate and sell cannabis for medicinal purposes to licensed dispensaries or individuals who possess a state-issued medical marijuana certification or permit.


Hydrolife explains Licensed Producer

In the United States, state and municipal rules that govern licensed producers vary widely and are always changing. The requirements that one individual meets in one state to become a licensed producer is often dramatically different in another state.

Despite state laws and licensing provided to licensed producers, it must be noted that the sale and cultivation of marijuana, even for medicinal use, still remains illegal at a federal level. Because of such laws, there are only state licenses issued to create a licensed producer and no federal licensing available.

In Canada, there are more than 40 licensed producers of medical marijuana from coast to coast. This number is expected to grow in 2018 as the country prepares for legalization. These licensed producers are considered big businesses, rather than individuals. They are issued licenses to grow by Health Canada, a federal organization.

To qualify for a license, the cannabis that is grown must go through rigorous quality control testing to ensure it meets the standards put forth on its labels, as well as the standards in place regarding additives like pesticides. Everything must adhere to rules set out by the licensing body.


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